M/s. Rajputana Steel Castings Pvt. Ltd., Panchmahal V. The Asst. CIT, Panchmahal Circle, Godhra

ITA 1581/AHD/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6943 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 27-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K DEV
• Assessee Lawyers: K P SINGH
• Section: 143(3)

Judgement Text

, A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO. 1581/AHD/2017 ( ASSESSMENT YEAR : 2009-10) M/S. RAJPUTANA STAINLESS LIMITED 213 MADHWAS, HALOL KALOL ROAD, KALOL, PANCHMAHAL / VS. ASSISTANT COMMISSIONER OF INCOME TAX-5 PANCHMAHAL CIRCLE, GODHRA ./ ./ PAN/GIR NO. : AAACR9333G ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI K. P. SINGH, A.R. / RESPONDENT BY : SHRI S. K. DEV, SR.D.R. DATE OF HEARING 02/05/2019 !'# / DATE OF PRONOUNCEMENT 03/05/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME TAX (APPEALS)-4, VADODARA, (CIT(A) IN SHORT), DATED 2 8.02.2017 ARISING IN THE ASSESSMENT ORDER DATED 25.03.2015 PASSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) R.W.S. 263 OF THE INCO ME TAX ACT, 1961 (THE ACT) CONCERNING AY 2009-10. 2. THE GROUND OF APPEAL RAISED BY ASSESSEE READS AS UNDER: ITA NO. 1581/AHD/17 [M/S. RAJPUTANA STAINLESS LTD. VS. ACIT] A.Y. 2009-10 - 2 - 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AS W ELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER BY SUSTAINING THE ADDITION OF RS.50,00,000/- U/S. 68 O F THE ACT ON ACCOUNT OF SHARE APPLICATION MONEY RECEIVED FROM M/ S. TALENT INFOWAY LIMITED. 2. WHEN THE MATTER WAS CALLED FOR HEARING BEFORE THE TRIBUNAL, THE LEARNED AR FOR THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE DISPUTE RELATES TO ADDITION OF RS.50 LAKHS UNDER S.68 OF TH E ACT ON ACCOUNT OF SHARE APPLICATION MONEY RECEIVED FROM M/S. TALENT I NFOWAY LIMITED. THE LEARNED AR FOR THE ASSESSEE REFERRED TO PAGE NO .95 OF THE PAPER BOOK IN THIS REGARD AND SUBMITTED THAT THE ASSESSEE HAD MOVED AN APPLICATION BEFORE THE SETTLEMENT COMMISSION AND TH E AFORESAID ADDITION PRESENTLY IN CONTEST IS ALREADY OFFERED BE FORE THE SETTLEMENT COMMISSIONS AS INCLUDED BY WAY OF ADDITIONAL INCOME OF RS.6.22CRORES AS REFLECTED IN THE ORDER OF THE SETT LEMENT COMMISSION UNDER S.245D(4) OF THE ACT. THE LEARNED AR FOR THE ASSESSEE ACCORDINGLY SUBMITTED THAT THE INCOME HAVING ALREAD Y BEEN OFFERED BEFORE THE SETTLEMENT COMMISSION CANNOT ONCE AGAIN BE ADDED IN THE REGULAR ASSESSMENT WHICH WILL AMOUNT TO DOUBLE TAXA TION. 3. THE LEARNED DR FOR THE REVENUE SUBMITTED THAT TH E INCLUSION OF RS.50 LAKHS IN THE DISCLOSURE MADE BEFORE THE SETTL EMENT COMMISSIONER REQUIRES FACTUAL VERIFICATION AND ACCO RDINGLY THE MATTER MAY BE SENT BACK TO THE FILE OF THE AO FOR APPROPRI ATE VERIFICATION. 4. ON CONSIDERATION OF THE RIVAL SUBMISSIONS, WE AR E IN AGREEMENT WITH THE CONTENTION OF THE ASSESSEE ON PRINCIPLE TH AT THE SAME INCOME IF OFFERED AND TAXED IN THE PROCEEDINGS BEFORE THE SETTLEMENT COMMISSION, CANNOT BE INCLUDED ONCE AGAIN IN THE PR ESENT PROCEEDING UNDER S.143(3) OF THE ACT. ACCORDINGLY, WE REMIT T HE ISSUE BACK TO THE FILE OF THE AO FOR FACTUAL VERIFICATION ON THIS ASP ECT. IT SHALL BE OPEN TO THE ASSESSEE TO ADDUCE EVIDENCE BEFORE THE AO TO SUPPORT ITS ITA NO. 1581/AHD/17 [M/S. RAJPUTANA STAINLESS LTD. VS. ACIT] A.Y. 2009-10 - 3 - CONTENTION THAT ADDITION IN CONTROVERSY ALREADY FOR MS PART OF THE ASSESSED INCOME FRAMED BY THE SETTLEMENT COMMISSION . ONCE THE CONTENTION OF THE ASSESSEE IS FOUND TO BE TRUE, THE AO SHALL DELETE THE ADDITION TO THE EXTENT OF INCOME ALREADY DECLARED B EFORE THE COMMISSION. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. SD/- SD/- (RAJPAL YADAV) (PRADIP K UMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 03/05/2019 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 03/05/201 9